04 Oct '11, 12pm

Time to relook property cooling measures, say analysts

SINGAPORE: A shortage of resale flats in the market is causing prices to shoot up and it may be time to relook some of the property-cooling measures, say property watchers. Resale flat prices, which were already at an all-time high, rose 3.8 per cent in the third quarter this year - higher than the 3.1 per cent pace recorded in the second quarter. Since property-cooling measures were introduced last year to take the heat off the exuberant market, the number of HDB resale flat transactions has dropped significantly - by 30 per cent compared to a year ago, said property firms. Market watchers said there has been a slowdown in the supply of resale flats, as home owners are put off by the rule that requires them to sell off their flat first before they are granted a higher bank loan of 80 per cent. Eugene Lim, key executive officer at ERA Realty, said: "Most sellers prefer to ...

Full article: http://www.channelnewsasia.com/stories/singaporebusinessn...

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